Boeing to end pension plans for 68K employees

Boeing converting pensions to 401k

Boeing said on Thursday it will end pension plans for 68,000 non-union employees, including its chief executive.

The move takes effect Jan. 1, 2016, and is part of the company's effort to reduce the growing costs of its pension plans.

Boeing said it expects to take $110 million non-cash charge in the first quarter for the pension change.

The charge is in addition to charges of $140 million and $80 million for making similar changes to labor agreements with union machinists in the Seattle area and in St. Louis.

Under the latest plan, non-union workers including managers and executives will keep what they have earned in their pensions through December 31, 2015, and then switch to a new defined-contribution retirement plan, Boeing said.